Our road map begins with another setback for chipotle. That e. Coli square worse than originally thought. And elon musks spacex makes history overnight. And an allstar team on selfdriving cars. How ford and google could be getting into business together. First up the final report card for Third Quarter gdp showing 2 growth. That data coming the morning after the major indices snap twoday losing streaks. Oil prices trying to rise from multiyear lows. We are starting to think about what 2016 will bring for some of these asset classes, jim. Yeah. Ive been noodling over this, going back and forth about what the analogy here. I feel this portion of Industrial America that is oil, natural gas, steel, iron, anything that we make, copper, anything that we produce, its almost like theyre folding like the dotcoms. They employed many more people. But the implosion that youre seeing theres a downgrade today of encana. One of the Great Oil Companies of our time. Theyve done everything right to be able to make this thing so they will survive. And still you find, wow. Can they . They have a huge amount of debt. Thats what the companies have in company. Something else is they had real businesses that were generating real cash flow. Come on. No. My are you like you are like the warden in shawshank . Are you obtuse . Let me just tell you heres what im saying. It is if you make a commodity, like if you were a dotcom, i dont know how you make it. Thats scary. Like u. S. Steel, do you see the tentative Labor Agreement . A lot of people get laid off. I sit here and think these are companies that all every one of them is is has got a scourge to them. Every one. Theres no one who is getting by. Maybe exxon . Maybe chevron. I would expect so. Anybody who still has access to the Capital Markets will figure out a way, one would think to your illusion to the dotcom companies. None of them had underlying profits. Granted, these guys are not profitable now. Carl, 2016. We have to have a turn. Nat gas. Nat gas is so low. Ap has a story out this morning naming the top business story for the year what would you say it is . Top business story of the year. The end of the oil boom. Ap calling it the slowdown in the china economy. There was a story today in the times. Pollution, empty buildings, too many factories. Landslides. Landslides. It is a joblike situation over. There i got the baltic freight from my friend, its still under 500. I dont think people realize. These used to be 10,000. This is the day rate to copper copper. We saw some numbers yesterday, they will be spexpanded out. Where is this stuff going . Nowhere. Which means what as we look into next year . Debt. The debt. Continued commodity collapses or do we stabilize at some i mean, at some point we stabilize. At some point things start to improve. Could it be like toll booth . Next year will be restructuring. Some people thought it would be this year. Youre so right. The china story may be the biggest, but the forgiveness people had. Will they forgive in 2016 . You cant keep going. Eventually it will catch up to them. Companies taken over by activists. Iron, 30 . You cant make money in aluminum at the price its at. You cant make money in these companies unless youre brazil. Where the government will step in. Sure. Big debate this morning about whether the smart thing do is to cut the dividend or preserve the dividend. Exactly right. Whats the answer . What would you do if you were a producer of your own. Looking at potash. Whats the deal with potash . Its gigantic. Youre talking about a yield thats 8. 9 . Can they really sustain that . Or dont they need that money for operations . As soon as you cut it, you tend to get a quick down, then you can come back as you realize they have the Balance Sheet to be able to have the wherewithal. I think exxon was always ready for this. Chevron has been fighting to keep the dividend. Exxon did not have to fight. Im looking at these companies that yield 9, 10, 11, 12. I think they should be more in preservation mode. You do . Yeah. What about shell, that enormous deal that we talked about a number of times . One of the biggest of this year that weve seen enormous deals in. So many of them. They made a mistake. Theres still question about that. Theres a vote coming up. Yesterday was the telegraph. Can they fail . Can that deal be rejected . It can be. The question is will it be . Its unclear because shell a lot of it is still in shell stock. Thats come down as well. I think the investors are shellshocked. They are. They are. I think that was a bad move. They wanted to preserve the dividend. They make this acquisition. Lets go back to rich kinder. He made two acquisitions that he will defend as being fabulous, the harold hamm, buying continental, and this natural gas. What happened with both of those, those were two bridges too far. Now, hell defend it and say listen i cut the dividend, now well play again. The only reason to own that stock for many people not for rich, because he has a huge amount. The only reason to own that stock for many people was the dividend. The distribution. Dividend because theyre a c corp. I dont know why you would want to own it otherwise . Where is the growth . Look at that chart. Ugh. I cant. I cant look. Its like i cant look. Pain, baby. I cant look. Heres another one well show you. Another food safety setback for chipotle. The cdcs investigating a new e. Coli strain linked to the restaurant chain. The new case from kansas, one from north dakota, three from oklahoma. All five patients reported eating at a chipotle a week before getting sick between november 18th and november 26th. Chipotle issued a statement saying we have indicated before that we expected we may see additional cases stemming from this. The cdc is now reporting some additional cases. You talked to steve els about this days ago. They did say Going Forward some people are saying listen, they said theres no more e. Coli. Going forward, they said they have found a way to centralize it. These are november 18th cases. The new centralized way of food safety will be terrific. Im not saying buy the stock. The quarter is horrible. You will go back. I already have. I did a twitter poll yesterday. I got about 1,000 responses. Percentage of people who said they would go back, 56 . Thats not particularly high. Nobody is forcing you go to chipotle. You may want to . Why wouldnt you wait . Even in my family. My son was going go yesterday with a buddy. My wife said, maybe you just want to go to shake shack tonight. Like qdoba or something. Why wouldnt you . Even though its just kind of like the food. My daughter went there. She took out. Im sure the chances you would get e. Coli is extraordinarily small. You can get e. Coli from any restaurant. Its out there. I know you guys think im crazy. Jim, you think im obtuse. Jpmorgan today takes it to neutral because until in their words, until you can say 100 this is done, why own it . Why go . Why go . Yeah. The taste is great. I know, but where do you want me to go, taco bell . No, i think you can have a tuna sandwich. I had tuna last night. Did you . Yeah. How did you know . Not a tuna sandwich. No, i took it out of the can, and i put a little mayo in, just mayo. And i had it. No kidding. A lot of information. No bread . No. David, i dont swim too two miles every day. I got to worry. Youre looking good. Two . Thats a warmup, man. Thats like getting loose. Do you guys think im crazy eating chipotle . I do think youre crazy . Yeah. No. But i do think the repeated reports of e. Coli will have an affect on the consumers given that its theyre not being forced to go. The stores that were closed and that were reopened do not have good numbers at all. Theres no. I felt kind of alone. Kind of alone at chipotle. Yep. Malone what i want the video of you sitting there alone eating your burrito. I want to see that. Half a burrito. Too many calories. I believe in steve els and the cfo. They have a way to make it safer. They have to go a week without them reporting this this is november 18th. I would have liked to know it earlier. I have been and will continue to go to chipotle. Thats it. Im making a stand, all right . Im making a stand. Okay. Right or wrong. Im going to chipotle. All right. My chipotle right or wrong. Were going to watch the story, obviously. Finally, Successful Mission for elon musks spacex. The companys falcon 9 rocket landed safely near Cape Canaveral after blasting fra ii from florida last night. This was spacexs first flight after an explosion after liftoff in june. After the mission jeff bezos tweeted congrats spacex on landing falcons suborbital stage. Welcome to the club. It requires more velocity. When i was growing up there was a place called nasa. Nasa. Now its been replaced by spacex. By the way, spacex, im told, when youre the smartest person on earth, you cant get a job there. The people who do Computer Engineering cant get jobs. This is the way of the future. Amazing. The guy i ordered something i ordered speakers yesterday. And they are already on their way. Ill have them today. Is that blue origin doing that for you . The amazon bezos starting to deliver packages to you . I think thats a very expensive way to do it. Think about it. Drones, okay . Spaceships. The guy is a country. Hes a country. Bezos. Yeah. He has his own country. What about musk . He has his own country. Did you see his tesla . Bezos takes the opportunity to tweet bezos in terms of amazon, i was shocked to order something the day before and it is coming. Welcome to the club, he says, on landing your rocket. I knew a kid, so smart, 4. 2, and he said sorry. This guy sent a rocket right through his roof, door. Thats a testament. Cant get a job at amazon, spacex, cant get a job at facebook, cant get a job at google wh google. What does this tell you. Why we work here . We dont have no. You can get a job at amazon, but its more like what you feature. I dont know if i can do that. That 13 miles a day of walking. We have titans. Selfdriving car. Do you think the tesla wont beat ford in the end . When we come back, a lot more speaking of things like tesla. Ford and google said to be teaming up to build Driverless Cars. Well fill you in on that. Later on well talk to the cofounder and ceo of periscope, about the future of live streaming. Talking about twitter. Another look at the premarket here. Dow with 6 1 2 trading days left, needs to make up a 3. 2 deficit for the year. Were back from post nine in a minute. Here at the Td Ameritrade trader group, they work all the time. Sup jj . Working hard . Working 24 7 on mobile trader, rated 1 trading app in the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of the other competitors do in desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivative pricing model, honey . For all the confidence you need. Td ameritrade. You got this. Take a look at handles franklin and moose weakes, two of the globetrotters here. Theyll do a shootout from the podium, celebrating 90 iconic years. 90 years of providing smiles and sportsmanship. They kick off the world tour december 26th. I went to a game where the shamrocks gave them a run. Boston shamrocks. Yeah. You know who else who has played some hoops in his day . Tom fairly of the nyse. I thought he was a baseball player. Second baseman . A cannon for an arm. Well, there was a time when the Harlem Globetrotters were one of the actual best teams at their emergence as a team. Yeah. Wilt chamberlain. Thats right. Meadowlark lemon. Curly neal still looks incredible. He was sitting courtside at a game eventually. He looked great. Really. Yeah. At a knicks game . I was watching on television. Oh. I go to the nets, ninegame package. They paying you . Not anymore. Meantime, published reports say that ford is in talks with google to help build Driverless Cars using the internets giant technology. Both sides said to have been in talked for quite some time. Ford is expected to announce that collaboration at the Consumer Electronics show in january. Its a nonexclusive deal that fords partnership would be separate from the company, separated from any liabilities, but gaining some traction. My friends who work at google, this is it. Theyre really telling me this is what a safer car. They drive it they selfdrive it. They sit in the back, read the paper, kindle fire, whatever they read. So real, im shocked. We all have to spend some time at google and get in one of these. Remember sleeper the woody allen movie . Yeah. When i see that car, i think of him getting in that car. Im impressed by all the things alphabet is doing. I was talking last night on mad money when they split the company into two, they had the chance to do great things. Googles another country. How many years until we have these Autonomous Vehicles all over the place. Three. Three. Three. No way. Semiautonomous. Meaning the driver is in the drivers see the. Autopilot. Look, a lot of times when you fly, autopilot is better. Theyre there if you need them. Semiyouautonomous semiautonomous, three years. A lot of localities will insist someone is still in the car. Thats a good safety procedure. Every time they do a test sorry. Saw an accident the other day, the guy if he a selfdriving car would have realized a truck was coming. Every time they have a driver, they find it makes things worse. The Collision Avoidance guys freeze. This was one where there was a collision, you could see it. If they had a google car, they would have avoided the accident. The car would have taken evasive action. Nice star wars reference. It will be interesting between google, ford, tesla, apple. I know. Uber which will offer some sort of Subscription Service one day with selfdriving cars all over the planet. How is that unicorn doing . 65 billion and counting or 60 billion how is therinos. The globe trotters from the podium in a minute. Hi watson. Annabelle, your birthday is tomorrow. Im turning seven. What did you ask for . A princess. And a pony. You like things that begin with p. I like pink frosting too. Will you have a cake . Yeah. I was too sick to have one last year. The data your doctor shared shows you are healthy. Are you a doctor . No. I help doctors identify cancer treatments. I want to be a doctor someday. I can help with that too. Watson, i like you. Here we go. Mad dash for this tuesday. We have about six minutes to the opening bell. We had a series of good earnings. Darden last week was good. Carnival was good. Lets add conagra to the list. Stellar quarter. Consumer foods, double digit operating profit. Heres whats key. Favorable price mix, strong net productivity. Heres the one you will hear about, lower commodity inputs. Same thing that rob sands said to me last night for constellation, which is beer. It is starting to trickle down, david. All these things, like the ag complex that is so weak. These companies are beginning to benefit. They may surprise us next year, talking about the big Consumer Products companies that buy these things that have collapsed. They are not hedged on it. Corn has not collapsed. Thats a key input. Down. Down about 25 . For constellation what are we talking there . Wheat. Barley. Energy costs figure into it. This is important. Brewing your beer. A lot of these things are energy intensive. This is just another the flip side. We were gloomy at the beginning. I totally get that. But we also have to remember that the collapse in commodities is really good for so many of our companies that are just giant commodity takers. I look at the jobs loss. Where does a guy do who is laid off at u. S. Steel . Ak steel . What do they do . Its a problem. That should be the focus of the election. Should be. Should be. We have the opening bell coming up after this. A lot more to watch on squawk on the street. Stay with us. Announcer its time to make room for the new mattress models during sleep trains huge year end Clearance Sale. Get beautyrest, posturepedic, even tempurpedic mattress sets at low clearance prices save even more on floor samples, demonstrators, and closeout inventory plus, sameday delivery, setup and removal of your old set. Why wait for the new models . Sleep trains year end Clearance Sale is on now superior service, best selection, lowest price guaranteed your ticket to a better nights sleep youre watching cnbcs squawk on the street live from the Financial Capital of the world. The opening bell in about a minutes time. Theres tom fairly of the nyce along with the Harlem Globetrotters at the podium. Every now and then they do what they call a shootout here from the podium. Well, we did have we had durant and hardin. They hit and farley missed. Farley missed big. If i were farley, i would go into finance. I would stay away. Exactly. Meantime, just as we said earlier, 6 1 2 sexcond sessions the year. Five months since there was a record of any kind, intraday or close. Highly unusual. Its a different pat frern what people predicted. Meanwhile we had 71 days this year of 1 moves, annual average sin since remember how mild the first half of the year was, made up for that. Theres a limited number of stocks to the upside, and a lot of stocks to the down side. Theres the opening bell. And the s p at the bottom of the screen. At the big board, Harlem Globetrotters celebrating 90 years. Their world tour begins on december 26th. Theyll hit 330 games in more than 260 cities. Over at the nasdaq by the way, theres one. Did they hit . No. Here comes farley. Hes not going to hit. Farley with the aba ball. No way. No pressure or anything. Oh he got one holy cow that means well have a good year. Yeah. Is that what it means . Good year . Man. All right. This is getting rough. Man. Kobe. Farley will play for the shamrocks. I will point out that hardin and durant hit them both. One and done. Theyre paid. Then they had nothing to say. Boy, isnt that true. Yeah. They had nothing. Hardin was a nice guy. This is hard to watch. Though wow. Granted, to be fair, theyre properly not used to shooting from this elevation, if you know what i mean. A bit of a different arc. Thats true. I this is this is getting sad. You know whats interesting . Theres a stock market happening here. Exactly. I dont want to detract from the shooting. Yeah. Why dont we talk about that a bit. Yeah. The one thing to say there is something to be said during the Holiday Season thats different. Mix it up. No ipos. Yes. Thats another part of this equation, when there should be good times. Yeah. M a for the year, 4. 6 trillion a record. Eight deals of 50 billion or more, surpasses 98s record. A lot of people worry about 16, and the effect high yield will have on deals. High yield has not been as important a part, carl, because private equity has not been leading this boom as it did the last one that ended 06, where you had enormous debt being used to buy companies. The emc deal by dell an outlyer in that. The huge question as we end the year, the performance of the stock prices, dow, dupont, noounoou newell, starwood, pfizer, allergan, none of them have performed as well as deals announced in the summer months or previous. That always gave confidence to ceos who were looking to doing a deal. That said, i continue to hear theres a great deal of activity. Whether theres anything put up before the end of the year, but it dont appear to be abating at this point. My travel trust owns starwood, i believe starwood would be higher if it were not for the deal. They gave up. The reit look, airbnb is cutting into the business. Airbnb is a disruptor for certain. No doubt. Have you used it. I have not used it. No . No. Weve used it. Yeah. Looked at it, not used the services. Its very attractive. Versus a hotel room. Caterpillar up more than 2 . What are we get nothing some weird yearend season . Stimulus, stimulus, stimulus. Always some guy who says it will be stimulus, you have to get into caterpillar. Stock is inexpensive if theres stimulus. I think that whole story thats one of the fake out stories of 2015. The china stimulus story. Right . Never panned out. Theyve been stimulated, but whatever theyre doing, its the consumer. I prefer i dont know how nike will report tonight. Nike is doing well in china. In part, by the way, because of basketball. A universal sport. Yeah. Take two interactive has the nba franchise for gaming. Fantastic in china. Fantastic. If you had bought disney going into the opening of star wars s expecting it to be a massive success, by all accounts it is, would be disappointed in the performance of the stock price, despite the creation of a huge new franchise for the company, certainly and its Film Entertainment business. That stock has done nothing after a downgrade on friday, and then a not great performance yesterday. I would contrast it with the overall media take, which is more positive. Its interesting. As an analyst that is vocal, rich greenfield, vocal today. Andrew sorkins column today. How do you like that . Laying out this espn case that i dont necessarily believe in. Blunting what has been an unbelievable release, successful release. No one doubts that. Comcast is up. Morgan stanley makes it a top pick for 16. They say adding video customers will get easier if the skinny bundles become the norm. I thought they were using the term cord shave, not cord cut. Is that the best a man can get cord shave . It may be. Putting together smaller bundles at different price points. Some of which may not include espn. The conversation weve had in recent weeks. Some of which may. But give the consumer more opportunity. We are getting to that ala cart in a way that was something that was discussed and feared more many years. John mccain used to talk about it, talk about potentially trying to regulate it. Never happened. Now the marketplace is bringing it in. When i speak to people about the stock market, they ask me to ask david faber what is going on with viacom what is really going on with time warner . These were stocks they all owned. These were owned stocks, time warner got a takeover. They fight it off. David, this group, cbs, this group was a famous group. Lots of cash flow, bought back stock, executives paid a lot what is the overarching theme that makes it so these almost trade like commodity stocks . What is it . I think your point is good. Of course, it was 14 when time warner got the bid from fox. We had talked about consolidation. This has been a year, to your point all of them have performed terribly in the market. Where these concerns about cord cutting, cord shaving, how content is going to be used, viewed, watched, monetized have come to the fore. Its been out there for years, as you know. Weve been talking about it. What was the Tipping Point . A lot of it was august. A lot of it was that interview we did with bob iger, bringing to the fore this idea maybe were there now. You have not had a great ad market. Things seem to be picking up now. The conversations ive had with management in the last couple weeks. They say the ad market is strong, right now, for linear tv. Looking at some notes i took from a conversation i had last week with somebody. That said, the upfronts were not particularly good. No. The combination of advertising, also these fears that we are now in this new world, that weve been waiting for. The facebook world, where people where people start falling off, bundle goes away. Then specifics, viacom. Think about the changes they have had there and key personnel for key shows, how they tried to get thing going again at mtv or nick. These were goto time warner and cbs were two stocks that you knew they would stand there, buy back stock, upside surprise, beat the numbers, fantastic top and bottom. Its not happening. No. What does malone say . Everybody bought netflix. Netflix. Ive been binging. What did you binge on. Trying to finish jessica jones. Yes. On that new ipad . I love my ipad. I know. No one else does, thats a stock you cant get out of the zone with. Ford is the s p leader, up almost 3 . I assume its on the google partnership, jim. The fact that milk is now expensive than gasoline in the country. Shouldnt it be . You milk a cow, it gets in a silver container, you have it. Gasoline is in the ground, they have to pump it out. They have to put all that equipment in. Get it to a refinery, through pipes at the refinery, they crack it. They smooth it into different places, they have to put it on another truck. Then it gets to your gas station. What a thats a versus a cow a cow milk it. There. Come on. Can do you that again . Lets go from that. Roll that tape all day. I had cows, longhorns, useless other than to gore you. My sister went once into the stable, she had donuts to give them. Doughnuts, she had to throw it up, land it on the horn. They have the tongue. Those things are dangerous. I didnt know you had cows. Longhorns. Is this on the cramer farm . Yeah. The cramers creamery. They dont do a lot the longhorns, unless you want to make a years worth of steaks. But were not meat eaters. Theyre still playing ball down here on the floor. Maybe bob pisani has gotten into a pickup game. Im waiting for them to come over. I saw curly neal in 1969. They were one of the greatest teams ever and most entertaining. I love the Harlem Globetrotters. Im standing here waiting so i can see them. We have a modest move to the upside. Materials and energy are up. Theyre the beaten up groups. This is the time of year you pick at beaten up groups. Couple things matter, china. The stimulus measures were important. The communist Party Leadership met yesterday and they pledged to expand the governments budget deficit next year. Thats not nothing. Even though i agree a lot of the stimulus doesnt flow through to places like we wanted to see it, like caterpillar. Not far from breaking out to the highest level from august in the shanghai composite. Other thing thats happening thats positive is oil is behaving today. Europe is on the mixed side. If you look at european oil and gas stocks. Theyre all up nicely. Bg and royal dutch, bp and ne which trades in italy, theyre all up. Thats a good thing to see. They had a terrible year. The third positive factor big miss there the third factor is the seasonal factor. This is the time of year where you pick the 40 group. The stocks down 40 or more. Theres an awful lot of them. If you look at some of the energy names in the united states, the chesapeakes of the world, anadarkos of the world. Theyre all up fractionally today. Its not a huge rally. I wouldnt say buying enthusiasm is big. This is the time of year when you should see some picking at this group. Thats happening. Industrials and materials, modest gains yesterday. These are among the biggest losers of the year. Cummins, freeport, ak steel, this is what would expect to see this time of year. And macys, kors, gap, nordstrom, not much going on here. Finally a new Stock Exchange launching or an old Stock Exchange thats relaunching. The national Stock Exchange, one of the oldest exchanges in the united states, started in 1885 in cincinnati. Stopped operating in 2014. Theyre relaunching today. New investors, including the old ceo of lehman brothers. The main selling point, they will charge much lower access fees and they think that will give them more business. Back to you. Right now the dow up 28 points. Thank you very much, bob pisani. Did want to get to we were talking about viacom. There is some news regarding that continued dispute between lets call it Sumner Redstone and his former come pan your, manuel herzer, who lived in his home and was his healthcare proxy until he changed that. And also according to sources i spoke to, most likely got rid of her in terms of what he was leaving in her will. All that causing, it would seem, a lawsuit on her part saying he can no longer take care of himself and saying therefore that she should be reinstituted as his healthcare proxy and or at least that his that his decisions to dismiss her were incorrect. They have a positive ruling in the redstone camp. Theres the background of it. The hearing will be held on february 8th. The judge did say that redstone does not need to be evaluated. And that, yes, they will allow two of redstones doctors and perhaps viacoms ceo who is now his healthcare proxy, to be questioned. Redstone will not be. The judge saying that a deposition of redstone would be unnecessary, an unnecessary invasion of his privacy. Something of a rin for the red stone camp if this dispute. More specifically, though what has gotten attention what about viacom and cbs. He continues to be the executive chairman of both of these companies. Speaking of people who are close to the situation, they do say that mr. Redstone is still with it. That he can, of course, conduct conversations, talk about things in terms of whats going on. Perhaps not at a strategic level anymore, which begs the question as to whether he should remain as executive chairman instead of nonexecutive chairman of both companies. Thats a role he was paid last year, i think, 10 million at cbs, another 13 plus million at viacom to fill. I am told, however, by people familiar with the situation that his compensation will have declined dramatically for the 2015, in terms of his holding that role, jim. There have been questions about whether shareholders should be paying this guy 23 million as executive chairman overseeing both of these companies. Im told that compensation will be far lower for 15 than it was for 2014. More specifically, as for the future of these companies, as ive said many times, and not that mr. Redstone is going anywhere, when the day does come, theres no economic consequence to his passing when that happens that will force either one of these companies to be sold that said it doesnt mean there wont be a great deal of activity, that sherry, his daughter who apparently has is in a better place with him again, and has been in the home again with her family, and may eventually become his healthcare proxy, taking over from his ceo, phillipe dauman, that she wont be exerting some more influence here or trying to. Can you explain to people at home there is a big difference between the executive chairman and chairman . A nonexecutive chairman runs the board, but doesnt have say in terms of whats going on in the actual management of the company. Executive chairman implies exactly that. Executive. Daytoday. Yeah. Potentially. That is a question there why he still holds that executive chairman role. I look at this stock, i understand you can dvr most of the programs, but i remember when he took it private, came public. One of the great stocks of our era, david. Viacom. Yeah. Just nothing. Yeah. Its been a tough its been a tough road, down almost 50 this year. Lets go to the bond pits now. Rick santelli is at the cme group in chicago. Good morning, david. You know, treasuries really are sort of floating in to the holiday week. We had a lot of volatility in many markets. The analogy i used before the fed meeting was expect a roller coaster ride, isnt the real key if you get off roughly the same place you get on, volatility is intense, but it ends up being just volatility. Thats sort of what happened with much, except for the dollar index with normalization. The range is pretty snug. Consider this. On the tuesday before the fed meeting, we had a 2. 27 ten, a 2. 99 30. Though moved the most. When you look at twos and fives, they settled. If you look at november 2nd for tenyear, you can see the pattern there. We are reverting back into a 2. 20s home base range. The spreads were getting ready for this, a lot of money to be made. Tens minus twos are flattening. New years may change a lot of those dynamics. Foreign exchange, thats where the whole game, the battlefield, everything, miscalculations there, but its all about relationships and other countries in Central Banks made adjustments. The one cool thing is look at a twoday of the dollar versus yuan. Whats fascinate is the historic run ended the thursday after the fed meeting. Down a couple sessions. Down on the dollar, up on the yuan. Its all about handicapping Foreign Exchange, managing to help their export market. The last chart, lets take the dollar index since early november. You can see that that has definitely backed away from 100. Things are getting much more normal in Foreign Exchange trading. Carl, back to you. Rick santelli, well talk to you in a while. Still to come, breitling looking to up the ante with its smart watch. The dow has lost what was about a 60point gain at the open. Up 15. Back in a minute. Leaders on the nasdaq 100, whole foods, getting comfortable leading that index. Up about 3. 5 . Marriott resuming buybacks. Stop trading with jim after a break. Trading. Theres a stock youll see down 20 , steelcase. This is a very fine company. In the release theyre talking about a swing in europe, organic decline of 8 versus up 14 . Its an interesting takeaway that europe is not as strong as we think it is. And just keep that in mind when you hear that they want to try to continue to pump the economy there. Thats a devastating number. This is just office furniture. You know, thats a swing like that frankly took my breath away. Whats on mad tonight. Paychex, i thought they had a great quarter. Its getting killed. And cellectis. We have been doing more obscure biotechs, theyre doing unbelievable things. I have to tell you guys, this market is still not right. Its still this bifurcation between the haves and havenots is daunting. You will have a whole foods that will spark something. You will just have these winners that have remained winners. The losers in these in mineral mining oil, i dont know. To me, it takes my breath away. Yep. Jim, well see you tonight. Thank you. And in the morning. Mad money 6 00 p. M. Eastern time. When we come back, breaking news on existing home sales. I built my business with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . Good tuesday morning. Welcome back to squawk on the street. Im Carl Quintanilla with sara eisen, simon hobbs, david faber. Relatively mild start to the day after seven consecutive triple digit moves for the dow. Up about 27 points. Getting some housing data. For that today we turn to eamon javers in washington. Reporter existing home sales down 10. 5 to 4. 76 million. This is a huge miss. The market was expecting down 0. 7 . So the question is why is this happening . The National Association of realtors says new mortgage document regulations explain a lot of this. Theyre slowing closings because people are confused about how the documents ought to be filled out. Any delay is pushing november closings into december which we might get in the statistics that show up next month. Continuing problems with Housing Affordability and also low inventory causing the problem we saw with this massive miss in new homes existing home sales today. Median home prices up 6. 3 to 220,300. Inventories are tight with 2. 04 million homes for sale, down 1. 9 from a year ago. Simon . Could a major buying opportunity be emerging in the retail space . Macys is one of the worst performers in the s p 500. Today macys and nordstrom down 10 . Record temperatures forecast in 30 states heading into christmas which may further hinder sales of winter apparel or mean theyre heavily discounted. Apparel supplier, ralph lauren, down 11 . And the closing manufacturer, pvh, with calvin klein among the brands is now down 20 in just one month. Pvh getting hit by the feed through from a stronger dollar this christmas throughout the year. For more on retail, matthew boss joins us, senior retail analyst at jpmorgan, ranked number one for retail by institutional investor. Welcome back. Thanks for having me. How serious is this warm weather for some retail teams . Its serious. Part of the problem is, i think christmas is coming, but i have not seen santa in many of the stores. I think you have a combination of weather and you have tourism that are both nearterm impacts. But theres larger picture concerns out there. A big part of it is this move towards omni channel and online. The price sensitivity, the Price Transparency its bringing. Macys, of course for the year, is basically halved in value. Lets come back to the bigger structural issues. As far as christmas and winter apparel sales are concerned what many people watching may not realize is the retailers to a certain extent are able to insulate themselves because they will have gross margin guarantees from suppliers. If youre supplying coats to macys, macys will say come what may, we want a 45 margin. They can claw back some of that cash, correct . Its true. Somebody like a macys has more negotiating power. And power at the table than somebody smaller, more regional like a dillards or bon ton. It is true in terms of the back and forth that takes place. Does that mean suppliers like pvh are a clear sell . They share in the pain. One that were more concerned about is ralph lauren. I think ralph guided the Third Quarter, which theyre currently in, to the new world of retail as a lot of Management Teams are calling it. Remember, they guided before macys reported. And again, i think they guided to the appropriate Third Quarter. As you look to fourth quarter, theres risk there. And i think theres risk to the whole group as you look to 2016. Thats the exercise that you need to be doing, taking the Third Quarter run rate that were seeing, and what will be reported soon, along with fourth quarter. Then take that, move that into 2016. I dont think any Management Team should be planning for anything different than the business theyre seeing today. Matthew, wanted to ask you about nike. You covered this stock. Earnings after the bell, best performer in the dow. Up 26 . Should investors be concerned with the high spending . They just signed a record lifetime deal with lebron james. The deals are nothing new for nike, but theyre getting bigger and more creative, which means theyre probably getting costlier. Is that something for investors to worry about heading into an olympic year . I dont think so the key to nike, this was the message they were trying to deliver at analyst day, whats driving demand is innovation. Theyre creating their own demand. People talk about this athletic cycle. I dont think its an athletic cycle, its a health and Wellness Lifestyle change that is providing an underlying tailwind, but the bigger thing and what retailers are saying and why they want more and more nike on the shelves, nike is creating its own demand. It has this opportunity where people look at next years, and the upcoming releases, they want the newest and latest because that innovation is there. Thats missing in core apparel. Matthew, i want to complete the conversation with where we started as far as the Department Stores are concerned and whether this is a major buying opportunity, in fact, within retail w macys down 50 . A lot of the weather affecting are transit dominguory for thes franchises. Macys is down 50 this year. Is it a longer term buying opportunity for people watching now, that may have a longer time period of, say, two, three years. I think if you have a two to threeyear time frame, some of these retail names are becoming interesting. What you need to do is be able to look past the fourth quarter. It wont be good. Pretty much every one of the apparel retailers and brands are below plan. I think you also need to be able to look through the first half of the year. Thats where im having more trouble, banking on the back half of next year. Youll have easier comparisons. Well be lapping this tourism, the weather that were seeing now. The only x factor then that i think does come into play for the consumer is the election. Just the overall uncertainty of where the next four years are going. In the past, times of uncertainty have frozen the consum consumer. Thats one thing nobody is talking about right now. Well leave it there. If we dont see you before the holiday, have a great one. Thank you. Matthew boss from jp morgue sglo jpmorgan. Coming up what do the last few weeks have in store for us . Art cashin will have some of the seasonality that appears to be missing when we come back. You might remember back in august we asked our cnbc audience, which stocks that were trading near record highs would be the best candidates to sell. Now its time to see whether the crowd was right. Dom chu has an update on how the rip stocks are doing. Were they right . They were right. Earlier on squawk on the street we told you about the stocks to buy, which one took a correction that were the best ones to buy. The crowd overwhelmingly said apple, turns off they were better off buying intel and procter gamble. We said these are the eight stocks in the s p, notable ones at record highs august 20th, facebook, jpmorgan, nike, starbucks, it was chipotle, it was under armour, home depot, it was netflix. We asked you, the viewer, the listener on satellite radio, the tweeters, the facebookers out there to vote which one of these stocks you thought would have been the best sell candidate. It turns out that Chipotle Mexican Grill was the stock that the crowd picked. The trade worked out for them well. If you look at a chart of chipotle versus the s p 500, the s p 500 is modestly lower, but chipotle lost a third of its value since august 20th. We knows there been turmoil in the market since then and its hard to model a foodborne illness outbreak. Investors got this one right with a little bit of luck. Look at facebook and netflix. Fairly decent divergence. Netflix shares since that time, down about 4 through august 20th, up 10 is facebook shares. Interesting divergence there for two of these internet oriented names. The one i want to focus on today, carl, nike versus under armour. A big divergence here. Under armour was one of those candidates. They have worked out well. Down about 21 since then, nike shares up 14 . We mention this because i know sara will be all over this nike reports earnings after the bell today. We will be watching for performance numbers out of nike to justify whether its vast outperformance over under armour can still take hold or whether under armour is due for a rise. Under armours analyst targets have it up possibly 30 for the next 12, 18 months. Waiting for a comment from sara. Has been stunning. Our audience got it right. I dont know how they could have predicted the e. Coli thing. Thank you, dom. Stocks up 35 on the dow this morning. Whats up for the rest of the year and into 2016 . Art cashin joins us at post nine. Good morning to you. Good morning. You write the santa claus rally historically starts Christmas Eve. Does it come that late . It does. The last five trading days of the year and the first two of the next year. So those who are asking where is he, they are too early . Too early. You know, you dont have to put his face on a milk carton yet. His timing is usually late. Oil is behaving today. Theyre trying to start the santa claus rally early. We had an early rally attempt that faded. This one is having difficulty. The likelihood of the dow tacking on 3 in the final days of the year does that probability seem good to you . No, not that good. You may get a rally about half that large. 3 might be a bit of a stretch. This is the time of the year we reflect on the calls that went wrong back in 2015, how the 2016 playbook is up. A. P. Just named the china slow down the top business story of 2015 2015, in terms of its impact on the economy, the policy, do you agree with that . Its close. That could be the reason the fed didnt do anything in september. They said that at time. Sure. That makes it a key factor and it was seen as responsible or contributory to that dreadful august that we had. It might not have been my first pick. But id have to think about it. Are you going with the end of zero rates . Is that your first pick . I dont know. I might make a slight bet that i think you might see zero again before you see 1 . Youre one of those. Yes, im one of those. Cuts before hikes. Yes. As you look into january, well Start Talking about january effects and all of that. Do you think the year will be an outlyer or the early part of it . Backtoback down years are a rare thing. You might have that working for you. 2015 frustrated a lot of people. Year before president ial election has a history of being up. As i said, this year was like commuting by roller coaster. What about that argument that there were still major Central Banks engaged in qe, and that should lift asset prices . Well, you know, again, it is elsewhere. Then you have to look at i thought that would affect us this year, that would be cheap money that would flood around the world, and partly because of the bank of japan. Wasnt that an argument that people put forward at the beginning of the year . It was. It was. It fooled a great many people. I think mr. Draghi may not have all the support we think he has. So i think 2016 could have some surprises. Are you in the camp that says low rates for 2016 . You do think well see a cut before a hike does that mean youre against consensus in lower treasury yields . Yeah. I think treasury yields have been moving lower since the fed hike. And the dollar weaker. The markets dont believe the fed and its timing. You can see that. Whether its looking at the fed funds projections or what. In fairness the markets dont want to believe that a central bank will tighten against them but they have tightened against you. You didnt think the central the fed would raise rates, but it did. Theres a belidgerance on your part of the view of the fed. Absolutely. They dont have a good record of predicting either the economy or where rates are going. It doesnt matter because theyre in charge. Theyre in charge until they have to reverse. Or are the markets in charge . Art, thank you. Thank you. When we come back, Oil Prices Falling more than 20 since just the beginning of november. Its been a brutal year if you are invested in energy companies. Getting a bounce today. But not much to show for when the ultimate slide could stop. Well talk about that with John Hofmeister next. Here at Td Ameritrade, they work hard. Wow, that was random. Random . No its all about understanding patterns like the mail guy at 3 12 every day or jerry, getting dumped every third tuesday. This happens every third tuesday. We have Pattern Recognition Technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. For all the confidence you need. Td ameritrade. You got this. Platini. Oil prices recovering after a volatile week again. Are prices likely to go down further . Its a question weve been asking for a while. Here to help us answer is is jo it is john hoffmeiter. Gas prices are lower. Are you surprised by this leg low their weve taken in recent weeks . Actually, no. It will get worse before it gets better. The First Quarter of next year is going to be the roughest quarter that the oil and gas industry has seen in a long time. The value destruction thats taken place, as people cannibalize parts and equipment from idle rigs or equipment, it will play out in the supply chain as a bysmal quarter. But there is light at the end of the tunnel. Every day we need 92 million to 93 Million Barrels of oil to get through the day. This will turn around. I dont think we reached the bottom yet. What do you see as the trigger for more pain and some of the havent pain in the price of oil . Do you think this new policies from the u. S. To end this decades old ban on exports is contributing to the plunge or is it an opec fueled move . I think its an opec fueled move and the saudis are putting dollar bills on every barrel they ship. As long as they take from the sovereign savings fund or borrow money do it, we will see this continue for some period of time. Could be the first half of next year. At some point people have to become rational. When they do, we will not see the overproduction. We will see Oil Companies adjusting to the lower level of production that is reflecting the Slower Growth of the Global Economy and therefore the Slower Growth in the demand for oil. It will take time. But the correction to low Energy Prices is low Energy Prices. The industry goes through this turmoil periodically in order to defer capital, delay production of new oil, and eventually the equilibrium will come back. My concern is that it will turn the other way. We will be in a demanddriven gap, eke lwhere the supply will insufficient to the demand. And prices will spike again. It will be the total opposite of what we see now. When do you foresee this . I guess it could be companies slashing supply the beginning of next year . Thats right. The supply will come down. The u. S. Is predicted to come down about 500,000 barrels mid year that could be the turning point. Well see. Depends on global growth. Global economic growth. And if global commit growth slows, it could defer it to later in 2016. Eventually it will come around. Before then, john, before we get to that point, what is the extreme example of low gas prices in this country . Viewers are bragging its 1. 57 here. 1. 60 there. Could we get to 1. 25 . What would be extreme . I think extreme is around the 1. 60, 1. 70 level as a national average. I doubt if we get to that level. John, you were talking about when the cycle turns and goes back up. We have restricted supply. Hasnt the world changed because of shale in this country . Because the cost of capital, the amount of capital you have to commit to get oil and gas out of the ground, its so much lower, as you raise the price, you can more than disproportionately raise the supply . I think that is true. I think alternative fuels are coming on in the future, such as fuels made from natural gas. We may have a permanently lower oil price. Dont underestimate the industrys capability to increase productivity and operate profitably at lower oil prices. Shale is an amazing transformation of the industry, and, yes, you can get into shale quickly. You can produce quickly. But as we turn the corner here on the downturn, i dont think well see a rapid recovery in production because so Many Companies are in such bad financial shape, theyre not going to be able to borrow the money to increase the production quickly. The banks will be very restrictive in who they lend to. In addition the supply chain is clearly broken now. Theres so Many Companies where inventories are so out of control and new production is not happening, that for them to ramp back up, they have to rehire people. Retrain people. Everything will be much slower on the uptake, which is why i think the price will jump quickly. I just want to ask you one further question from left field. Whether the whole situation in which we find ourselves is not partly due to the fact that a lot of the Energy Trading and big banks were broken apart and at some point they had the ability to control the price of oil, perhaps on behalf of the sovereign wealth funds, a much less transparent world that artificially supported Energy Prices force a long time in ways that we probably in ways that we couldnt see the financial crisis coming, we couldnt determine now either. I would not put the word traders, logical, predictable in the same sentence. Its not built that way. Its an illogical market. This is not like housing other retail. Every day we need 92 million, 93 Million Barrels of oil to get through the day. The traders need lots of volatility. They can induce volatility on a small surplus of oil which is what theyve done. That value destruction that comes from the volatility on the way down will be reversed. So traders will make a killing on the way up. But thats the trading marketplace. Thats what it does. You live with the irrationality, the impracticality, you try do your best as an operator in the industry with that kind of price mechanism that you have no way of predicting. Got it. John, thank you. Always good to see you. Thank you. Straight ahead, jim grant joins us live to explain why the feds decision to raise Interest Rates actually highlights the weakness of the economy. Were back after this break. Im sharon epperson, here is your cnbc news update. Police in bosnia detained 11 people suspected with links to isis. The corporation continuing in 13 locations in the capital of sarajevo. During the search of locations used by the suspect police say they found and seized evidence confirming the isis links. Rescuers are continuing to search the site of a massive landslide in china. Dozens are still missing after a man made mountain of excavated soil and construction waste crashed into an industrial park. One body was retrieved today. The first reported death from the disaster. Search and rescue crews expanding the search area for missing passengers after a ferry sunk after the coast of indonesia killing at least three people. The boat was carrying 12 crew members and 110 passengers. And gop president ial candidate donald trump went on the offensive against Hillary Clinton last night in michigan calling her a liar for saying isis is using him on video to recruit and mocking her brief absence from the stage at last saturdays democratic debate. And thats our cnbc news update for this hour. Back to you. Thank you very much. With the dow up 47 points, if youre trying to figure out which sector to invest in for the new year, it turns out theres an unusual pattern you might want to know about. Our Senior Market commentator, mike s mike santoli is here. Usually the Market Analysis firm has tracked something they call the bridesmaids strategy, buying the second best performing sector in the market in a given year and betting on outperformance in the subsequent years. Its worked very well over the last 25 years or so. Since 1991, buying the second best sector from one year, holding it for 12 months outperformed the s p 500 by 5 Percentage Points annualized per year, and it has worked twothirds of the time, better than even chances of beating the market next year by buying the number two for a given year. This year healthcare was the pick. Its actually working again. Healthcare has outperformed the s p 500 so far year to date. Now the running for 2016s bridesmaids, the second best sector two consumer discretionary, which is number one. Healthcare once again going to repeat. But its close enough that it could also be Consumer Staples or perhaps technology depending on how the rest of the year goes. I would point out the sort of winner and number two sector are based on total return including dividends. That could be some play in the numbers based on how it finishes up. I also point out the folks used this strategy and suggest using it for asset classes. In other words, large cap stocks, small cap stocks, treasuries, real estate securities, foreign stocks, gold, commodities, all the rest of it. Its worked since 1973 at about the same rate, about twothirds of the time you tend to outperform the following year. Again by 5 Percentage Points per year. Its a bit of a quirky strategy. Nobody is clear why it works, if its anything more than random chance. Probably is the suggestion is momentum is a real thing. Sectors get momentum, this is a bit stealthy momentum, you might call it people have not bought into it yet, so theres still more room to run. Think its clever the use of bridesmaid becoming the bride. I wonder what else that will bring us for 2016, sara eisen. I was a bridesmaid. Lets get over to Rick Santelli with the Santelli Exchange and a special guest. Special guest we both admire greatly, jim grant. Founder and editor of grants Interest Rate observer. Thanks for taking the time this preholiday week. You are entirely welcome, rick. Nice to be here. Jim, basically in one of your recent writings you said that ultralow Interest Rates are an opiate not a tonic. In hindsight can you explain that statement and what it may mean for the future . You know, debt does strange things. It changes ones perception. It tamps down the anxiety of borrowers. It emboldens lenders, and it does other things as well. What ultra low rates tend do is pull consumption forward in time and to push back business failure in time. So there are fewer bankruptcies than there would otherwise be. Theres more consumption. For example, more car sales. Ultra low Interest Rates, the kind weve had for seven years and counting, these rates are not so straightforward as i think the fed would have us believe, nor will be the hope for exit from them. Jim, this is an important area youre bringing up. Janet yellen has said basically we should have more confidence in the economy because they raised rates. Has nothing to do with this is the second longest Business Cycle that weve had in recent history. But its important to understand the real reason why the fed raised, otherwise the Market Investors may not be able to see the true path Going Forward. Youre thoughts. I think you can make a case that the fed raised because it felt it had to. There is some pressure of institutional dignity in this decision. The fed for many a moon has been hinting ever more broadly that now is the time. September then was the time. No, it wasnt the time. Finally comes the end of the year in which they said they would certainly do something. So they did that thing. Now, the setting in which they did it is problematical. Measured growth is 2 , not the 3 , and more likely 4 that prevailed in previous tightening cycles, the start of those tightening cycles. The state of credit is a lot to flimsier. Many things are more worrying than they ordinarily are at the beginning of a tightening cycle in Interest Rates and credit. Its difficult for me to accept that the fed raised rates as a society because we had to have them at this moment. We may need them, but we may not need them now. Jim, let me interrupt you. If were pulling forward, i agree completely, due to the ultra low rates, creating potential problematic investments in the future with your failure comment that would mean that at some point in the future were going to see that the basket is running empty. How will that man fast itself, your final answer, sir . Fewer car sales, less speculative grade Debt Financing of car sales, and because these ultra low rates have masked the true state of credit, well see more bankruptcies. Theyll be pulled back into the present from having been pushed out of the future. But still, rick it will be a great year in which to be alive. Absolutely. One final thing, real quick. Zero before 1 is the new mantra. I disagree with it. I think the path will be up a little higher in rates, your final thought on that . Not knowing, i say zero first, even before one half of one percent. But were all guessing, are we not . We are, indeed. Happy holidays from all of us at cnbc and thank you for your comments. Thank you. Merry christmas. Now back to hobbs, simon hobbs. Thank you very much. More food safety concerns at chipotle. This is their fifth Infectious Disease outbreak so far this year. The stock is down sharply today, falling 30 since the beginning of october. We will talk to an Infectious Disease and food safety expert about what on earth is going on here and what lessons the rest of us have. And can you explain why you recommend synthetic over cedar . Super food . Is that a real thing . Its a great school, but is it the right one for her . Is this really any better than the one you got last year . If we consolidate suppliers, whats the savings there . So should we go with the 467 horsepower . Or is a 423 enough . Good question. You ask a lot of good questions. I think we should move you into our new fund. Sure. Ok. But are you asking enough about how your wealth is managed . Wealth management at charles schwab. Welcome back to squawk on the street. S s p 500, leading the way for industrials is caterpillar. Shares of ryder system, united rentals, paccar, all up about 2 . A big focus on one of the worst performing stocks. Even more problems for chipotle. The cdc investigating a new e. Coli strain linked to the restaurant chain. Jane wells is in l. A. With the latest. Good morning. Reporter simon, a big burrito of bad news for chipotle, trying to recover from an earlier e. Coli situation and a neurovirus outbreak. The company is offering its deepest sympathies to those who have gotten sick and is continuing to work with the cdc as five more people in three states fell ill between november 18th and 26th. So almost a month ago. They had all eaten at chipotle within the previous week. This is a shocker since a few days ago coceo steve ells was trying to calm customer concern concerns. I will say that we can assure you today that there is no e. Coli in chipotle. We have thoroughly tested the food, tested the surfaces and are confident that chipotle is a safe place to eat. That could be accurate because that was after this latest outbreak. Its reportedly a different strain of e. Coli than the larger outbreak which started the end of october. Here come the downgrades, jpmorgan down grading shares to neutral. Jpmorgan looked the other way after the boston neurovirus this month, calling it a phenomenally unlucky coincidence, but the latest new e. Coli case is very prizing and disappointing. What about you . Have you been supportive . Is it all too much . Cnbc. Com has been polling people on whether they are afraid to eat at chipotle. Over half of those responding say, yes, they are stopped eating there. While nearly 25 said they are not concerned no single ingredient has been found as the culprit for either outbreak yet. Guys . Jane, the stock is down more than 30 in just three months. Down 4 again today. Jane wells, thank you for the update. Our next guest says chipotles limited menu may make it more difficult to detect the source of the outbreak. Joining us to explain is dr. William shatner, professor at vanderbilt university. Thanks for being with us. Good to be with you. Another strain of e. Coli with different dna, according to the cdc. Why cant they find the source of any of these outbreaks . What Public Health tries do is track back the source. They try to help the restaurant, in this case the restaurant chain, find out what the problem is so they can prevent it in the future. The way chipotle keeps its food records, its hard to trace back to the source. So the restaurant chain, the cdc, everybody is working hard to get to the root of this problem. But were not quite there yet, i think. Based on your knowledge of previous e. Coli outbreaks, a lot of experts point to the produce, tomatoes, let us, cilantro, versus the proteins which have to be cooked as the potential culprits. Do you agree with that or could it be coming from the employees themselves . Thats always a possible. All of the separate outbreaks, the number of outbreaks in the same chain, thats unprecedented with different causes. It could be a whole series of employees, but thats an unprecedented series of coincidences then. So theyre looking at the food sources, particularly produce, which doesnt get cooked, and therefore wont kill the bacteria or the viruses. How dangerous are the infections . Well, the infections, of course, besides discomforting, serious for people who are older, very young, people with underlying illnesses. Theyre potentially fairly serious. Two outbreaks of e. Coli, salmonella, the neurovirus. If you were to take any restaurant that had 1500 outlets that had raw ingredients of this nature and put it under a microscope anywhere in any developed country, how many outbreaks of this type of disease could you expect to find . Well, you would expect to find very, very few of them because theyre all very attentive to their food sources. So, this series of outbreaks with one chain has everyone, including my friends at the cdc, scratching their heads. Theyre trying to figure out what the common denominators here are. Theyre doing their best to help the food chain so that further people dont get sick. Okay. If a billion dollar business with just 68 ingredients cannot stop this, what does that mean more generally for food safety in the country . How vulnerable are we to what we are eating . If one chain with 68 ingredients has had five infections and they cant stop it. Actually, our food safety history in this country is the best in the world. But its a global food source these days. And its increasingly difficult, i will say challenging, to make sure all the producers of food are adhering to the highest standards. That really wasnt i was asking you. It had been a long time before 9 11, since there had been an attack on this country on its home soil. I am asking about the food safety and the chain across this country and how vulnerable we are if one chain with these mildish outbreaks on 68 ingredients cannot mop it up. What would we do if the food chain in this country was deliberately compromised . I think that would be an enormous challenge for the bad people to try and do. It could be done, i think, in a small way, but not in a large way. I think Public Health around the country really would keep that impact of anything like that to a minimum. So, we heard from the ceos. Theyve come out and apologized. Talking about these new impreme imprementtations of safety procedures, saying theres no e. Coli, as you just heard, in any of the stores. Are you recommending to your patients, would you recommend to patients and to the audience to stay away . I think i would be cautious for people who have serious underlying illnesses already. That perhaps they could have their christmas dinner someplace else. But to watch. I like chipotle. I wash them the best. I hope the cdc can continue to help them so that they can get past this period. And we can get to the bottom of this. Well see if they can find any answers. Doctor thank you for joining us. Thank you. With you, david, telling people to stay away. No burritos for christmas. Not a traditional christmas meal. Up next, warm weather sweeping the nation this winter. It could hit 72 degrees in new york city on Christmas Eve causing major problems for some businesses, others are loving the record high temperatures. Well look at winners and losers of this mild weather. It certainly has been an unseasonably warm december. Record highs are expected in 30 states over the next few days. Here in new york we could be looking at 72 degrees on Christmas Eve. The Weather Channels alex wallace joins us now with more on these crazy temperatures. Alex. Stwloo yeah, crazy. You said it. It really is insane. As you look at the month of december here, this really puts it into perspective. We focus in on the record highs and the record warm lows. Basically the record warmth for the month of december so far, those numbers are tallying into the thousands, which you compare that to low temperatures. The cold. Only in the hundreds. Way out of whack here when were talking record warmth, and were going to keep things warm over the next several days heading through our christmas. Heres how things are playing out across the country. We seem to have lost alex there. Im sorry. I dont know what happened there. Was that the Weather Channel . We got a bit of a mixed line there. Are we going to wait for alex, or shall we carry on . What would you like to do . All of this weather might be tough for some businesses. We were talling about retail earlier in the program. Obviously there are other benefits to other entrepreneurs with this much wild milder than expected weather. Morgan brennan is live in new jersey with more on that. Morgan, where are you . I am in new jersey. Im at a home depot. Ill tell you right now, Christmas Trees and mulch, that is what is selling at this new jersey home depot, which also happens to be the largest in the u. S. These warmer than usual temperatures that we are seeing in many parts of the country, not necessarily good for certain businesses, like some ski resorts or apparel businesses. For home depot, the Company Says Weather like this is good for business. It drives more outdoor projects. We caught up with some consumers to get their take. I returned some winter stuff because its not really slowing right now. I dont need the things that i bought. Its been booming, which is good. Im glad the weather is like this. We dont normally have roof and deck at this time, but were doing it. The stuff im getting done today is like stuff im doing for the house that you wouldnt regularly do in these months, and so we can do some brick laying. Thats my brick layer over there, and were going to do some stuff since the weather is really good. Another industry that tends to benefit is restaurants. The National Restaurant association surveyed 800 operators this month. It found that one of the two most favorable weather conditions is warmer than usual winter. 45 table service. 51 fast casual, fast food operators cite this type of weather as having a positive impact on sales. Its also worth noting because it is upss forecasted busiest day of the year that this type of weather, this good weather also tends to be a boone for ups and fedex. As youll recall, simon, two years ago we saw those service snags for both of those Companies Getting packages delivered on time for christmas and a big part of that issue was tied to bad weather. Tied to iceberg and snowstorm wrshz. Its a gift in a logistic sense. I love that. Brick laying at christmas. Lets go out and lay some bricks. I guess the down side of where you are is those people that are suggesting that they bought stuff for the snow that theyre now returning and presumably home depot is taking it back. Be that generators or shovels or whatever. Its still very twosided, isnt it, morgan . Yes. So certainly we have spoken to some consumers like the gentleman we just showed who have been making returns or maybe not purchasing as much in terms of weatherrelated products. The company is it say that overall they see overall this is good for business. You tend to see more foot traffic. Analysts say this as well. You tend to see more of these projects or other bigger products that are purchased. Not great for the ski resorts, i would imagine, simon. Many people believe what Mother Nature gives now shell take back in january and february. Enjoy the warm weather. Morgan brennan joining us from home depot in new jersey. Lets go to john and see whats going on for squawk alley immediately following this program. Elan musk sticks the landing. That rocket landing after being at orbital levels. Also, selfdriving cars getting a new partnership. That could be important for google. Finally, periscope ceo, that unit of twitter is going to be here with us. Actually, from california. All coming up on sidewalk alley. Good morning. 8 00 a. M. At space ex head waters. Its 11 00 a. M. On wall street, and squawk alley is live. Welcome to squawk alley for a tuesday. As always, myself, swron, kayla at post nine. Swroinks from out west its john mcmalmee. A lot to work with today. First off, a major success for an